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Entree Resources Ltd T.ETG

Alternate Symbol(s):  ERLFF

Entree Resources Ltd. is a Canadian mining company. The Company is focused on the development and exploration of mineral property interests. The Company is principally focused on its Entree/Oyu Tolgoi JV Property in Mongolia. The Entree/Oyu Tolgoi joint venture property includes Lift 1 and Lift 2 of the Hugo North Extension copper-gold deposit, the Heruga copper-gold-molybdenum deposit, and a large underexplored, highly prospective land package. The Oyu Tolgoi project comprises two separate land holdings: the Entree/Oyu Tolgoi JV Property, which is a partnership between Entree and OTLLC, and the Oyu Tolgoi mining license, which is held by OTLLC. The Entree/Oyu Tolgoi JV Property comprises the eastern portion of the Shivee Tolgoi mining license and all the Javhlant mining license. The Company has a 56.53% interest in the Blue Rose Joint Venture. The Company has an interest in acquiring a 0.5% net smelter return royalty on the Canariaco copper project in Northern Peru.


TSX:ETG - Post by User

Comment by Skip57on Apr 29, 2024 4:00pm
224 Views
Post# 36013358

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Mongolians dependence on OT

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Mongolians dependence on OTShortly before the closing, Pentwater published a massive review of the proposed transaction.  There were 2 givens at the time. First the economic adjustment of TD's use of 0.7. The review showed that acquisitions of this scale in the industry averaged 1.1. TD's use of 0.7 was arbitrary. In their "fairness opinion" TD gave 2 examples, one using 0.7 and the other 1.1. TD's choice of 0.7 was the most favorable to those paying them. RIO!!! Second the choice of 10% discount again was favorable to RIO. At the time, industry norm was 8%. And lastly the copper price. Pentwater's publication reviewed industry forecasts from many sources. The consensus was $4.50. Again most favorable to RIO was TD's choice of $3.50. Note that at the closing and since, copper has never traded at $3.50 or less. Whatever the resolution, I expect RIO will have to disclose a large cash outlay or the issuance of equity.
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